Questions to ask yourself when considering the need for a financial planner

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In the age of the internet, many people take solace in getting answers to their burning questions from a search engine, rather than investing money into a trained professional. While there’s no doubt that the first route is cheaper, in cases where money is involved, it can actually cost you more in the long run.

A prime example of this is a financial planner. Sure, the internet is filled with an abundance of articles about how you should invest your money, but how much of it is constructive and beneficial to your particular circumstances? Spoiler alert: not much. 

A financial planner’s sole job is to analyse your financial situation and help you look after – and increase – your money. Their advice comes from years or decades of expertise and experience, and is tailored for you, unlike the general information found online.

While a financial planner sounds great in theory, you should assess your personal situation to see if it’s right for you. To help you figure out whether you’ll benefit from one, we’ve put together some questions you should ask yourself prior to deciding whether to move forward.

Do you have the drive to actually do it yourself?

Some people will scoff at the idea of paying a financial planner when they believe they can research themselves to figure out the best way to invest their money. Whether or not this sentiment is true should be prefaced by something more pressing; will you actually take the time to do the research and administrative work?

We get it, life gets busy. But, if investing your money has been on your mind for years and you are yet to actually do anything about it, then you can probably humbly answer no to this question. Hiring a financial advisor will ensure that your finances will actually get taken care of and not added to a long ‘to do’ list.

Will a financial planner make my life less stressful?

There are many situations where a financial planner can substantially reduce stress. Examples of this are; a retiree who’s worried about how long their finances will last, people too busy with work to figure out a solid financial plan, or those who are focussing on raising a growing family. 

Scenarios like these can leave someone with little to no time to figure out their finances, but they can all add stress to an already stressful life. This is where a financial planner can help sort out your finances, and add to your quality of life.

Do you have a good knowledge about investments, wealth management, financial instruments and researching specific assets?

If the above phrases are foreign to you, then you’ve probably already found your answer; it could be very beneficial for you to engage a financial planner. 

The finance world can be technical, and it requires solid knowledge of the market and jargon to understand it correctly and to be able to grasp what investments are best. Financial advisors have vast knowledge and experience in these areas, and will be able to make educated recommendations to help you benefit most.

Has a life event recently occurred that would benefit from a financial planner?

If you’ve found yourself in a position where you’re suddenly searching online about how to invest money, then there’s likely to be a reason behind why you’re suddenly looking to invest. This often happens when people find themselves in a new situation that involves finances. Examples of this are inheritance, retirement, divorce or marriage. 

If you’ve found yourself receiving a lump sum of money, or if you have to divide up finances, it’s a good idea to speak to an expert. Large amounts of money can have a huge impact on your life – both in a positive or negative manner. Investing a small amount of money on an experienced and knowledgeable financial advisor, will likely save (or make) you more money in the bigger scheme of things.

Dane Jansen
Dane is a Managing Partner/Responsible Manager at Positive Dynamics. He embraces his leadership skills to provide guidance to his clients giving them the confidence and conviction to achieve financial success.
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